Leading investment firms are taking a stand against what they view as the Securities and Exchange Commission’s systematic dismantling of fair competition in the crypto exchange-traded product market.
In a pointed letter to SEC Chairman Paul Atkins as shared on VanEck’s X account, executives from VanEck, Canary Capital, and 21Shares have demanded the immediate restoration of the “first-to-file” approval framework, arguing that the agency’s recent shift toward simultaneous approvals has created an unfair playing field that favors industry giants at the expense of innovation.
SEC favoritism undermines innovation in the ETF market. pic.twitter.com/HM7P2Dm0XP
— VanEck (@vaneck_us) June 6, 2025
SEC favoritism undermines innovation in the ETF market. pic.twitter.com/HM7P2Dm0XP
— VanEck (@vaneck_us) June 6, 2025
The June 5 correspondence, signed by VanEck CEO Jan van Eck, 21Shares CEO Duncan Moir, and Canary Capital CEO Steven McClurg, represents a rare unified challenge to regulatory policy from firms that have built their reputations on being first movers in the crypto ETF space.
Their argument centers on a fundamental principle that has historically governed the $15.4 trillion ETP industry: those who file first should be first in line for approval.
The executives cited the January 2024 simultaneous approval of 11 spot bitcoin ETFs as a watershed moment that exemplified everything wrong with the SEC’s new approach. Despite filing months after smaller competitors, industry behemoths like BlackRock and Fidelity received approval on the same day, ultimately capturing the largest market shares.
Crypto Innovation Vs. Favoritism
The letter argues that the SEC’s departure from historical norms has fundamentally altered market dynamics in ways that discourage risk-taking and creativity. Under the traditional first-to-file system, smaller firms like WisdomTree were able to establish themselves as industry leaders by pioneering new products and gaining first-mover advantages that translated into lasting market share.
The current system, according to the executives, creates a perverse incentive structure where large firms can afford to wait for innovative competitors to do the heavy lifting of product development and regulatory navigation, then simply file similar applications with confidence that they will receive simultaneous approval.
This approach not only dilutes the rewards for innovation but actively encourages a copycat mentality that stifles the competitive forces that have historically driven the ETP market’s explosive growth.
Call For Policy Reversal
The firms emphasized that this regulatory shift has broad implications beyond individual companies, warning that it “disincentivizes innovation, encourages replication, and boosts market concentration.” They argue that larger entities benefit from this system while agile innovators are systematically penalized, creating a less dynamic and less efficient market that ultimately harms investor choice.
They argue that the Commission’s core mission of ensuring market fairness and promoting capital formation is being compromised by policies that entrench existing market power rather than fostering competition.
The letter closes with an urgent plea for the SEC to return to honoring filing sequence, emphasizing that this change is essential not only for individual firms but for preserving America’s leadership in financial innovation.
